Solenex LLC v. Bernhardt, No. 18-5343 (D.C. Cir. 2020)
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Solenex challenged the Secretary's cancellation of its oil and gas lease in the Badger-Two Medicine Area. The district court ruled in favor of Solenex, concluding that the amount of time that had elapsed between the lease's issuance and its cancellation violated the Administrative Procedure Act (APA) and the Secretary failed to consider Solenex's reliance interests before cancelling the lease.
The DC Circuit held that delay by itself is not enough to render the lease cancellation arbitrary and capricious. The court also held that the Secretary did consider, and in fact compensated, Solenex's identified reliance interests. Therefore, the district court's determinations were erroneous and the court vacated the judgment.
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